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Living longer than expected may be a bigger retirement risk than bear markets
A longer retirement horizon can strain withdrawals and assumptions even if an investor’s portfolio eventually recovers from a downturn, according to MarketWatch.
MarketWatch reports that in retirement planning, the biggest risk may be living longer than expected, even if a portfolio can later recover from a bear market.
The outlet says a longer lifespan can extend the period over which withdrawals are needed, which can challenge retirement plans.
The analysis centers on the idea that recovery from market declines is only part of the risk equation, because the timing of life events can materially change how long assets must last.